Net sales of $1,158.2 million, up 102% over net sales of $574.1
million in the year-ago quarter

GAAP EPS of $0.66 compared to first quarter fiscal year 2011 GAAP EPS
of $0.02; non-GAAP EPS of $0.60 increases 233% over $0.18 in the
year-ago quarter

GAAP operating income of $145.8 million compared to first quarter
fiscal year 2011 GAAP operating income of $23.3 million; non-GAAP
operating income of $158.0 million improves 258% over the year-ago
quarter

GAAP net income of $104.4 million compared to first quarter fiscal
year 2011 GAAP net income of $2.4 million; non-GAAP net income of
$96.0 million increases 264% over the year-ago quarter

“North American consumers continue to embrace the convenience, choice
and consistent experience provided by the Keurig® Single Cup
Brewing system and, as evidenced by our strong holiday sales, are
encouraging friends and family to do the same,” said Lawrence J.
Blanford, GMCR's president and CEO. “We believe our sales in the period
were, in part, the result of our efforts to ensure strong in-stock
positions on store shelves as well as due to growing awareness of the
Keurig® brand which was aided by our nationwide advertising
and strong in-store merchandising.”

With increasing consumer adoption, the Keurig® Single Cup
Brewing system, supported by GMCR’s growing family of owned and
non-owned beverage brands in K-Cup® packs, is changing the
way North America brews its coffee and other beverages.

“The value of single-serve, at-home brewing seems to be resonating with
consumers,” added Blanford. “According to NPD Group, in calendar 2011,
sales of single-serve coffee makers accounted for 50% of the total
dollars consumers spent overall in the coffee maker category. The Keurig®
Single Cup Brewing system has set the bar for consumers’ single-cup
experience, and drove an estimated 35% unit share of all coffee makers
during the October through December 2011 period according to NPD.”

First Quarter Fiscal Year 2012 Financial Review

Net Sales (in millions)

Thirteen weeks ended

December 24,2011

December 25,2010

$ Increase(Decrease)

% Increase(Decrease)

K-Cup® Packs

$

715.7

$

332.9

$

382.8

115

%

Brewers and Accessories

330.4

188.0

142.4

76

%

Other Products and Royalties

112.1

53.2

58.9

111

%

Total Net Sales

$

1,158.2

$

574.1

$

584.1

102

%

Approximately 90% of consolidated first quarter fiscal year 2012 net
sales were from sales of Keurig® Single Cup Brewers, K-Cup®
packs, and Keurig®-related accessories, with the remainder
of net sales consisting primarily of sales of bagged coffee and sales
from the office coffee services business.

GMCR sold 4.0 million Keurig® Single Cup Brewers during
the first quarter of fiscal year 2012. This brewer shipment number
does not account for consumer returns.

We estimate that the combination of brewer shipments from GMCR and
its licensed partners resulted in shipments of 4.2 million Keurig®
Single Cup Brewers in the first quarter of fiscal year 2012.

The year-over-year increase in K-Cup® pack sales was
driven by an 81 percentage point increase in K-Cup® pack
sales volume, a 21 percentage point increase in K-Cup®
pack net price realization due to price increases implemented
during fiscal year 2011 to offset higher green coffee and other
input costs, and a 13 percentage point increase in K-Cup®
pack net sales due to the acquisition of Van Houtte.

Net sales from Van Houtte, acquired in December 2010 and part of the
Canadian business unit, contributed approximately $111.9 million to
consolidated net sales in the first quarter of fiscal year 2012, an
increase of $103.1 million compared to the prior year period.

First quarter of fiscal year 2012 gross profit of $336.6 million
represented gross margin of 29.1% of net sales compared to 25.0% for
the corresponding quarter in fiscal year 2011.

The improvement is due to the net price realization from price
increases on K-Cup® packs implemented during fiscal
year 2011 to offset higher green coffee and other input costs, a
shift in the Company’s sales mix due to K-Cup® packs
increasing as a percentage of overall sales and the net price
realization from price increases on Keurig® Single Cup
Brewers implemented to offset higher input costs. These benefits
offset higher green coffee costs in the first quarter of fiscal
year 2012, and higher sales return expenses associated with Keurig®
Single Cup Brewers.

GAAP operating margin improved to 12.6% of net sales in the first
quarter of fiscal year 2012 from 4.1% in the prior year period as a
result of selling, operating, and general and administrative expense
leverage. During the first quarter of fiscal year 2011, general and
administrative expense included approximately $8.7 million in
transaction-related expenses due to the Van Houtte acquisition and
$6.0 million in legal and accounting expenses associated with the SEC
inquiry, the Company’s internal investigation and pending litigation.

Non-GAAP operating margin, which excludes $0.7 million in expenses
associated with the SEC inquiry and pending litigation, as well as
$11.5 million in amortization of identifiable intangibles related to
the Company’s acquisitions, improved to 13.6% of net sales in the
first quarter of fiscal year 2012 from 7.7% in the prior year period.

On October 3, 2011, the Company sold all the outstanding shares of Van
Houtte USA Holdings, Inc., also known as the Van Houtte U.S. Coffee
Service business or “Filterfresh” business resulting in a gain of
$26.3 million.

The Company’s effective income tax rate was 37.7% for the first
quarter of fiscal year 2012 as compared to an 80.5% effective tax rate
for the prior year period. The difference is primarily attributable to
the non-deductible acquisition-related costs recognized in the first
quarter of fiscal year 2011 related to the Van Houtte acquisition.

Diluted weighted average shares outstanding increased 8.4% to 159.4
million in the first quarter of fiscal year 2012 from 147.0 million in
the first quarter of fiscal year 2011 primarily due to the issuance of
approximately 10.1 million shares on May 11, 2011 from a public
offering and concurrent private placement to Luigi Lavazza S.p.A.
pursuant to its preemptive rights.

Balance Sheet Highlights

Accounts receivable increased 73% year-over-year to $412.5 at December
24, 2011, from $238.1 million at December 25, 2010, reflecting
continued sales growth.

Also reflecting continued growth in the business, inventories were
$606.7 million at December 24, 2011 compared to $269.1 million at
December 25, 2010. The year-over-year increase is comprised of:

a $175.2 million, or 266%, increase in raw materials most notably
from an increase in green coffee volume and a 44% average green
coffee cost increase;

a $162.4 million, or 80%, increase in finished goods inventory
with approximately 66% of the increase due to K-Cup®
packs on hand.

On October 3, 2011, the sale of the Filterfresh business to ARAMARK
Refreshment Services, LLC was completed in exchange for $149.6 million
in cash. Approximately $4.4 million of cash was transferred to ARAMARK
as part of the sale of Filterfresh, resulting in a net cash inflow
related to the Filterfresh sale of $142.6 million, net of transaction
costs of $2.6 million. The purchase agreement with ARAMARK contained a
covenant whereby the Company was required to re-pay a portion of the
proceeds received from ARAMARK in the event of certain conditions.
Subsequent to December 24, 2011, the covenant was settled under which
the Company paid ARAMARK $7.4 million.

Debt outstanding decreased to $479.7 million at December 24, 2011 from
$1,085.0 million at December 25, 2010 as a result of paying down our
long-term revolver. Proceeds from the public offering and concurrent
private placement to Luigi Lavazza S.p.A. on May 11, 2011 and from the
sale of Filterfresh on October 3, 2011 were used to reduce our
outstanding debt obligations.

Business Outlook and Other Forward-Looking
Information

Company Estimates for Fiscal Year 2012*

“Our brewer sales in the first quarter of fiscal year 2012 were above
our expectations, with approximately 4.2 million brewers sold by the
combination of GMCR and our licensed partners. That total is more than
half of the 6.5 million brewers sold in all of our fiscal year 2011,”
said Blanford. “As these brewers come into use, we expect them to have a
positive impact on future portion pack demand. Given the challenge of
estimating sales in such a dynamic environment, in the coming months we
will be working to ensure we apply appropriate rigor and analyses to
confirm and refine our modeling assumptions and estimates of forward
demand. In the meantime however, we are reaffirming our prior revenue
and earnings estimates for fiscal year 2012.”The Company reaffirmed its
prior estimates for its fiscal year 2012, including:

Total consolidated net sales growth of 60% to 65% from fiscal year
2011.

Fiscal year 2012 non-GAAP earnings per diluted share in a range of
$2.55 to $2.65 per diluted share, excluding any acquisition-related
transaction expenses; legal and accounting expenses related to the SEC
inquiry and the Company’s pending litigation; amortization of
identifiable intangibles related to the Company’s acquisitions; and
any gain from the sale of the Filterfresh business.

Capital expenditures in the range of $630.0 million to $700.0 million
for fiscal year 2012.

* Referenced brewer shipments do not account for returns.

Company Estimates for Second Quarter Fiscal Year 2012

The Company is providing initial estimates for the second quarter of
fiscal year 2012:

Net sales growth of 45% to 50%.

Fully diluted non-GAAP earnings per share in the range of $0.60 to
$0.65 per share excluding any acquisition-related transaction
expenses; legal and accounting expenses related to the SEC inquiry and
the Company’s pending litigation; and amortization of identifiable
intangibles related to the Company’s acquisitions.

Of note when comparing growth rates for fiscal years 2011 and 2012:
second quarter fiscal year 2011 results reflect the impact of the
acquisition of Van Houtte completed during first quarter of fiscal 2011;
a price increase on K-Cup® packs announced in the first quarter of
fiscal year 2011 and completed in the second quarter of fiscal year 2011
across all channels was a meaningful contributor to the second quarter
fiscal year 2011’s growth; and, year-over-year comparisons will need to
consider GMCR’s sale of its Filterfresh business in October 2011 which
contributed approximately $91 million in revenue during fiscal year 2011.

The Company’s estimates for its second quarter fiscal year 2012 reflect
lower portion pack and brewer growth rates compared to its first quarter
fiscal year 2012 following the extraordinary growth driven by holiday
purchases during first quarter fiscal year 2012 and the established
seasonality of the business.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally
accepted accounting principles (GAAP), the Company provides non-GAAP
operating results that exclude certain charges or credits such as
transaction expenses related to the Company’s acquisitions including the
foreign exchange impact of hedging the risk associated with the Canadian
dollar purchase price of the Van Houtte acquisition; any gain from sale
of the Fitlerfresh U.S.-based coffee services business; legal and
accounting expenses related to the SEC inquiry and pending litigation;
non-cash related items such as amortization of identifiable intangibles
and losses incurred on the extinguishment of debt; and the effect of net
operating and capital loss carryforwards, each of which include
adjustments to show the tax impact of excluding these items. These
amounts are not in accordance with, or an alternative to, GAAP. The
Company’s management believes that these measures provide investors with
transparency by helping illustrate the underlying financial and business
trends relating to the Company’s results of operations and financial
condition and comparability between current and prior periods.
Management uses the measures to establish and monitor budgets and
operational goals and to evaluate the performance of the Company. Please
see the “GAAP to Non-GAAP Reconciliation of Unaudited Consolidated
Statements of Operations” tables that accompany this document for a full
reconciliation the Company’s GAAP to non-GAAP results.

Conference Call and Webcast

Green Mountain Coffee Roasters, Inc. will be discussing these financial
results with analysts and investors in a conference call and live
webcast available via the Internet at 5:00 p.m. ET today, February 1,
2012. Management’s prepared remarks on its quarterly results will be
provided via a Current Report on Form 8-K and also posted under the
events link in the Investor Relations section of the Company’s website
at www.GMCR.com.
As a result, the conference call will include only brief remarks by
management followed by a question and answer session. The call along
with accompanying slides is accessible via live webcast from the events
link in the Investor Relations portion of the Company’s website at http://investor.gmcr.com/events.cfm.
The Company archives the latest conference call for a period of time. A
replay of the conference call also will be available by telephone at
(719) 457-0820, Passcode 9427808 from 9:00 p.m. ET on February 1, 2012
through 9:00 p.m. ET on Sunday, February 5, 2012.

About Green Mountain Coffee Roasters, Inc.

As a leader in specialty coffee and coffee makers, Green Mountain Coffee
Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its
award-winning coffees, innovative Keurig® Single Cup brewing
technology, and socially responsible business practices. GMCR supports
local and global communities by offsetting 100% of its direct greenhouse
gas emissions, investing in sustainably-grown coffee, and donating at
least five percent of its pre-tax profits to social and environmental
projects.

GMCR routinely posts information that may be of importance to investors
in the Investor Relations section of its website, including news
releases and its complete financial statements, as filed with the SEC.
The Company encourages investors to consult this section of its website
regularly for important information and news. Additionally, by
subscribing to the Company’s automatic
email news release delivery, individuals can receive news directly
from GMCR as it is released.

Forward-Looking Statements

Certain statements contained herein are not based on historical fact and
are “forward-looking statements” within the meaning of the applicable
securities laws and regulations. Generally, these statements can be
identified by the use of words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,”
“potential,” “project,” “should,” “would,” and similar expressions
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Owing to the
uncertainties inherent in forward-looking statements, actual results
could differ materially from those stated here. Factors that could cause
actual results to differ materially from those in the forward-looking
statements include, but are not limited to, the difficulty in
forecasting sales and production levels, the degree to which there are
changes in consumer sentiment in this difficult economic environment,
the Company’s success in efficiently expanding operations and capacity
to meet growth, the Company’s success in efficiently and effectively
integrating the Company’s acquisitions, the ability to maximize or
successfully assert our intellectual property rights, the Company’s
success in introducing and producing new product offerings, the
Company’s dependence on external capital, including the Company’s credit
facility, competition and other business conditions in the coffee
industry and food industry in general, fluctuations in availability and
cost of high-quality green coffee, any other increases in costs
including fuel, the Company’s ability to continue to grow and build
profits in the At Home and Away from Home businesses, the Company’s
ability to attract and retain senior management, the continued
availability of a consistent supply of parts for our brewers, and the
brewers themselves, the Company experiencing product liability, product
recall and higher than anticipated rates of warranty expense or sales
returns associated with a product quality or safety issue, the extent to
which the data security of the Company’s websites may be compromised,
the impact of the loss of major customers for the Company or reduction
in the volume of purchases by major customers, delays in the timing of
adding new locations with existing customers, the Company’s level of
success in continuing to attract new customers, sales mix variances,
weather and special or unusual events, the impact of the inquiry
initiated by the SEC and any related litigation or additional
governmental investigative or enforcement proceedings, as well as other
risks described more fully in the Company’s Annual Report on Form 10-K
for fiscal year 2011 and other filings with the SEC. Forward-looking
statements reflect management’s analysis as of the date of this release.
The Company does not undertake to revise these statements to reflect
subsequent developments, other than in its regular, quarterly earnings
releases.

GMCR-C

GREEN MOUNTAIN COFFEE ROASTERS, INC.

Unaudited Consolidated Statements of Operations

(Dollars in thousands except per share data)

Thirteen

Thirteen

weeks ended

weeks ended

December 24,

December 25,

2011

2010

Net sales

$

1,158,216

$

574,148

Cost of sales

821,612

430,548

Gross profit

336,604

143,600

Selling and operating expenses

141,358

78,289

General and administrative expenses

49,408

42,031

Operating income

145,838

23,280

Other income (expense), net

691

88

Loss on financial instruments, net

(1,134

)

(6,342

)

Gain on foreign currency, net

2,686

1,579

Gain on sale of subsidiary

26,311

-

Interest expense

(6,463

)

(6,058

)

Income before income taxes

167,929

12,547

Income tax expense

(63,247

)

(10,098

)

Net Income

$

104,682

$

2,449

Net income attributable to noncontrolling interests

268

37

Net income attributable to GMCR

$

104,414

$

2,412

Basic income per share:

Basic weighted average shares outstanding

154,704,471

141,374,327

Net income per common share - basic

$

0.67

$

0.02

Diluted income per share:

Diluted weighted average shares outstanding

159,367,829

147,036,072

Net income per common share - diluted

$

0.66

$

0.02

GREEN MOUNTAIN COFFEE ROASTERS, INC.

Unaudited Consolidated Balance Sheets

(Dollars in thousands)

December 24,

September 24,

2011

2011

Assets

Current assets:

Cash and cash equivalents

$

84,111

$

12,989

Restricted cash and cash equivalents

9,087

27,523

Receivables, less uncollectible accounts and return allowances of
$58,956 and $21,407 at December 24, 2011 and September 24,
2011, respectively

Fixed asset purchases included in accounts payable and not
disbursed at the end of each year

$

33,463

$

11,676

Non cash financing and investing activities:

Equipment acquired under capital lease obligations/vendor notes

$

10,974

$

-

GREEN MOUNTAIN COFFEE ROASTERS, INC.

GAAP to Non-GAAP Reconciliation of Unaudited Consolidated
Statements of Operations

(Dollars in thousands, except per share data)

Thirteen weeksended December 24, 2011

Thirteen weeksended

December 25, 2010

Operating income

$

145,838

$

23,280

Acquisition-related expenses (1)

-

8,668

Expenses related to SEC inquiry (2)

669

5,989

Amortization of identifiable intangibles (3)

11,453

6,136

Non-GAAP operating income

$

157,960

$

44,073

Thirteen weeksended December 24, 2011

Thirteen weeksendedDecember 25, 2010

Net income attributable to GMCR

$

104,414

$

2,412

After tax:

Acquisition-related expenses (1)

-

16,382

Expenses related to SEC inquiry (2)

417

3,680

Amortization of identifiable intangibles (3)

7,849

3,893

Gain on sale of subsidiary (4)

(16,685

)

-

Non-GAAP net income

$

95,995

$

26,367

Thirteen weeksended December 24, 2011

Thirteen weeksendedDecember 25, 2010

Diluted income per share

$

0.66

$

0.02

After tax:

Acquisition-related expenses (1)

$

-

$

0.11

Expenses related to SEC inquiry (2)

$

0.00

$

0.03

Amortization of identifiable intangibles (3)

$

0.05

$

0.03

Gain on sale of subsidiary (4)

$

(0.10

)

$

-

Non-GAAP net income per share

$

0.60

*

$

0.18

*

* Does not add due to rounding.

(1)

Reflects direct acquisition-related expenses of $10.8 million (net
of income tax benefit of $2.1 million); the write-off of deferred
financing expenses of $1.6 million (net of income tax provision of
$1.0 million) on our former credit facility in conjunction with the
new financing secured for the Van Houtte acquisition; and the
foreign exchange impact of hedging the risk associated with the
Canadian dollar purchase price of the Van Houtte acquisition of $4.0
million (net of income tax provision of $1.3 million). Direct
acquisition-related expenses incurred prior to the closing of the
acquisition are tax affected. Upon the close of the Van Houtte
acquisition in the first quarter of fiscal 2011, the direct
acquisition related expenses are nondeductible. As a result, during
the first quarter of fiscal 2011, the Company recognized a $2.1
million tax expense related to the reversal of nondeductible
acquisition-related expenses incurred during the Company’s fourth
quarter of fiscal 2010. This tax affect was reversed for purposes of
this non-GAAP table.

(2)

Represents legal and accounting expenses related to the SEC inquiry
and pending litigation classified as general and administrative
expense.

(3)

Represents the amortization of intangibles related to the Company’s
acquisitions classified as general and administrative expense.

(4)

Represents the gain recognized on the sale of Filterfresh, net of
income taxes of $9.6 million.